Regulatory Updates: Top 7 Developments: MCA, RBI, SEBI, IFSCA, IBBI & MoLE

Amendment to SEBI (Issue & Listing of Municipal Debt Securities) Regulations, 2015

SEBI · 11 August 2026

SEBI has introduced operational changes to the framework governing municipal debt securities following amendments to the Issue & Listing of Municipal Debt Securities Regulations. For private placements, municipal debt securities may have a face value of ₹1 lakh or ₹10,000, with ₹10,000 securities required to have fixed maturity and no structured obligations, and the trading lot must equal the face value. For pooled finance vehicles/SPVs, a two-step escrow mechanism and separate interest-payment and sinking-fund accounts are prescribed, with one year’s interest obligation to be maintained. The circular also permits specified credit-enhancement mechanisms, including cash collateral, state government equity and guarantees, and relaxes the timelines for submission of financial results to 60 days for half-yearly and 90 days for annual audited results. The provisions are effective immediately. Read the circular.

Companies (Indian Accounting Standards) Amendment Rules, 2026

Notification G.S.R. 725(E) · MCA · 12 August 2026

MCA has notified the Companies (Indian Accounting Standards) Amendment Rules, 2026, further amending the Companies (Indian Accounting Standards) Rules, 2015. The amendments update Ind AS 101, Ind AS 107, Ind AS 109, Ind AS 110 and Ind AS 7, with key changes relating to classification and measurement of financial instruments, hedge accounting, disclosure requirements and cash-flow reporting, including specific provisions on nature-dependent electricity contracts and non-recourse arrangements. Several amendments apply to annual reporting periods beginning on or after 1 April 2026, making them relevant for FY 2026–27 financial reporting by companies to which Ind AS applies. Read the notification.

Discussion paper on due diligence by Insolvency Professionals to identify fraudulent or malicious CIRP

IBBI · 14 August 2026

IBBI has proposed guidance for Insolvency Professionals to identify and address fraudulent or malicious initiation of CIRP under Sections 60(5) and 65 of the IBC, addressing concerns such as misuse of CIRP to settle debts, avoid statutory liabilities, or circumvent regulatory investigations. IPs are expected to exercise due diligence and identify indicators of potential abuse — including negligible operations, related-party transactions, regulatory proceedings, creditor concentration and connected CIRPs — and, where fraudulent or malicious initiation is found, to approach the Adjudicating Authority under Sections 60(5) and 65. Stakeholders were invited to submit comments on the draft circular by 24 August 2026. Read the discussion paper.

Amendment to the AML, CFT and KYC Guidelines, 2022 — FINgate 2.0 reporting

IFSCA · 3 August 2026

IFSCA has introduced modifications to its Anti-Money Laundering, Counter-Terrorist Financing and KYC Guidelines, 2022 applicable to all regulated entities in International Financial Services Centres, clarifying reporting requirements under the PML Rules and mandating online filing through the FINgate 2.0 portal, now including Cross Border Wire Transfer Reports (CBWTRs). The permissible countries for IP-address-based verification of NRI customers have been specified — the USA, Japan, South Korea, UK, Canada, UAE, Singapore, Australia and the European Union — provided they are not identified by FATF as high-risk or under increased monitoring, nor designated high-risk by the Central Government; the same list applies to onboarding low-risk NRI customers via V-CIP. Read the guidelines. · Read the CBWTR circular.

Amendments to Responsible Business Conduct Directions on loan-dues recovery and recovery agencies

RBI · 6 August 2026

RBI has overhauled the framework governing recovery of loan dues and engagement of recovery agencies across regulated entities, amending the Responsible Business Conduct Directions, 2025 — including the Commercial Banks and NBFC amendment directions — by inserting a consolidated section on recovery conduct. Regulated entities must maintain a board-approved recovery policy, conduct due diligence before empanelling recovery agencies, and ensure recovery agents hold the prescribed IIBF certification; recovery-related calls must be recorded and retained, and borrowers must receive prescribed disclosures identifying the recovery agency and process. The circulars also regulate device-locking mechanisms in mobile device financing and provide for borrower compensation in cases of wrongful recovery action. All amendment directions take effect from 1 January 2027, leaving a limited window to revise recovery policies, agent contracts and monitoring systems. Read the first circular. · Read the second circular.

Digital Shram Sankalp launched; Shram Suvidha Portal 2.0 among key digital labour platforms

Ministry of Labour & Employment · 5 August 2026

The Ministry of Labour & Employment, with MyGov, launched Digital Shram Sankalp — an ideation hackathon inviting technology-driven solutions to strengthen India’s digital labour ecosystem — centred on three departmental platforms: e-Shram, the National Career Service and the Shram Suvidha Portal 2.0. The Shram Suvidha Portal 2.0 operates as a unified interface for labour law compliance, covering registrations, licensing, inspections and filing of returns, aligned with the Occupational Safety, Health and Working Conditions Code, 2020 and the Code on Social Security, 2020, with features including auto-registration, single annual returns, risk-based inspections and a Single All-India Licence for multi-state operations. Employers with multi-state operations should review their registration and return-filing processes against the upgraded portal. Read about the initiative. · Visit the Shram Suvidha Portal.

Central sphere statutory bonus eligibility & calculation limits under the Code on Wages, 2019

Notifications S.O. 4710(E) & S.O. 4711(E) · MoLE · 25 August 2026

The Ministry of Labour & Employment has notified the wage limits for payment and calculation of statutory bonus under Section 26 of the Code on Wages, 2019. Under S.O. 4711(E), employees drawing wages not exceeding ₹21,000 per month are eligible for bonus under Section 26(1). Under S.O. 4710(E), where an eligible employee’s wages exceed ₹7,000 per month, the bonus is to be calculated as if the wages were ₹7,000 per month or the minimum wage fixed by the Central Government, whichever is higher. Both notifications are deemed to have come into force from 21 November 2025. Read S.O. 4711(E). · Read S.O. 4710(E).

This update is intended for general information only and does not constitute legal advice. For advice on how any of these developments may affect your business, please contact WhiteStone Legal.